Quick overview

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Nearly $1 billion of leveraged crypto positions were liquidated during a sharp fall on Monday, fueling a huge selloff. Bitcoin dropped as much as 8% to $83,824, representing a 30% decrease since early October.

Ether has declined 36% over the past seven weeks and fell as much as 10%, reaching as low as $2,719. Smaller, less liquid tokens, often favored by traders due to their higher volatility and tendency to outperform during rallies, have been especially affected by the market downturn.

MarketVector index tracking the bottom half of the top 100 digital assets has fallen by nearly 70% this year. Data from tracker Coinglass shows the cryptocurrency market remains fragile after a weeks-long selloff that started in early October when President Donald Trump’s threats of higher tariffs rattled markets, wiping out about $19 billion in leveraged bets.

Traders analyze liquidation data to assess leverage, gauge risk appetite, and determine whether a market wipeout has truly cleared out excess speculation. However, these numbers may be incomplete, as industry insiders say exchanges restrict full liquidation data, making it difficult for traders to know the true extent of leverage in the system.

“It’s a risk-off start to December,” said Sean McNulty, APAC derivatives trading lead at FalconX. The lack of dip buyers and minimal inflows into Bitcoin ETFs are primary concerns. We expect these structural headwinds to persist this month.

Digital assets are also influenced by broader macro shifts impacting global markets, as US equity traders begin the week on the defensive. As Bank of Japan Governor Kazuo Ueda signaled a likely rate hike this month, Japanese stocks declined, and the yen strengthened.